DDD Group plc (“DDD” or the “Company”) announces that the Company has entered into an agreement with Arisawa Manufacturing Company Ltd. (“Arisawa”) for a $500,000 Secured Loan (“August 2016 Loan”) pursuant to the existing authorities granted to the board of directors. The Loan is secured by the Company’s US 2D to 3D conversion patent number 6,496,598.
The August 2016 Loan has been established under the authority granted to the board of directors pursuant to Section 114 the Company’s Articles of Association.
The main provisions of the Loan are as follows. The Loan has an annual interest rate of 10%. Loan interest is paid at the end of each calendar quarter. The loan is repayable on or before December 31st 2016 or as otherwise mutually agreed between the Company and Arisawa. The loan may be repaid without penalty in whole or in part together with any accrued interest. In the event that the Company receives any intellectual property settlement and/or secures additional funding or other similar monetization event, it has agreed to apply the net proceeds to repaying the Loan prior to using the proceeds for repaying any other convertible loan notes in issue from the Company.
In the event that the Company is in breach of the terms of the Loan and has not remedied the breach within the period of time allowed, Arisawa has the right to acquire ownership of the Company’s US 2D to 3D conversion patent number 6,496,598. Acquisition of the patent will not provide any rights or interest in license agreements related to the secured patents that are currently in effect that yield royalties to the Company.
Arisawa Manufacturing Co., Ltd. is currently a holder of 15.7% of the existing issued ordinary share capital of the Company.